Updated Two-Suite Residential Income
For Sale
$284,900
850 S RIVER Drive 2070, Tempe, AZ 85281
Gated Tempe condo with dual primary suites, private patios, vaulted ceilings, and access to a community pool and spa.
Property Size1,130 SF
Days on Market15
Property Features for 850 S RIVER Drive 2070
General Information
Standard status
Active
Size
1,130 SF
Property subtype
Apartment
Taxes and HOA fees
Annual Taxes
$1,177
Building Details
Building Size
1,130 SF
Year Built
1985
Listing Agency:
Compass
Listed By:
Neil P Gatten · License #SA670961000
(602) 570-6345
Source:
Alexiabertsatos
Added: Sep 3
Changed: Sep 6
Last Checked: Sep 16 at 11:20PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Compass
Investment Insights
Based on property information with market context.
Built in 1985, this upstairs condominium features two primary suites, each with a private full bathroom and walk-in closet. The interior includes vaulted ceilings, a dedicated dining area, custom tile, fresh paint, and a fireplace. Two private patios extend the living space and provide outdoor areas for Arizona living.
The property is located in a gated Tempe community with a pool and spa. It offers access to Arizona State University, Tempe Town Lake, downtown Tempe dining and entertainment, and Loops 101 and 202. The residence is positioned at 850 S RIVER Drive in Tempe, Arizona.
The property is located in a gated Tempe community with a pool and spa. It offers access to Arizona State University, Tempe Town Lake, downtown Tempe dining and entertainment, and Loops 101 and 202. The residence is positioned at 850 S RIVER Drive in Tempe, Arizona.
Key Highlights
- Two primary suites, each with a private full bath and walk‑in closet
- Upstairs condominium in a gated Tempe community
- Two private patios and a community pool and spa
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$15,315
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.38%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$306,300
$306.3K
Cap Rate 7%
$218,786
$218.8K
Cap Rate 9%
$170,167
$170.2K
Market Conditions
NOI Build-Up for 1,130 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$29.6K $26.16/SF
− Vacancy
−$1.7K −$1.52/SF
EGI
$27.8K $24.64/SF
− OpEx
−$12.5K −$11.09/SF
NOI
$15.3K $13.55/SF
Area
Tempe, AZ
Vacancy
5.80%
Lease Rate
$26.16 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$306,300
Cap Rate 7%
$218,786
Cap Rate 9%
$170,167
Alternative Uses
Best Use
Apartment 5plus
$218.8K
$191.4K – $255.3K
NOI $15,315 @ 7.0% cap · market cap 5.38%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$355.3K
$310.9K – $414.6K
NOI $24,874 @ 7.0% cap · market cap 8.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,530
Businesses Nearby
Explore this area
Business Placement
Demographics for 85281, AZ
69,218
Population
32,475
Households
2.1
Avg Household Size
26
Median Age
49%
College-Educated
91%
High-School Grad
13.3 sq mi
ZIP Area
5,204
Density / Sq Mi
$59,084
Median Household Income
$32,805
Median Earnings
$1,531
Median Rent
$364,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Gated Tempe condo with dual primary suites, private patios, vaulted ceilings, and access to a community pool and spa.
Where is this residential income property located?
The property is located at 850 S RIVER Drive 2070 Tempe, AZ.
What is the asking price?
The asking price for this property is $284,900.
What are key features of this property?
This property features: Two primary suites, each with a private full bath and walk‑in closet; Upstairs condominium in a gated Tempe community; Two private patios and a community pool and spa
